The escrow instructions and this policy statement, including any amendments thereto, will constitute the sole and entire agreement between American Escrow Company (AEC) and the parties thereto. By submitting documents for escrow with AEC, the parties agree to all policy terms outlined here. AEC reserves the right to amend its stated policy, and any such change will become effective as to all accounts.

AEC reserves the right to refuse any contract for escrow that does not meet our specific requirements.

All amendments to the original escrow instructions must be made in writing, signed by all parties, delivered to and accepted by AEC.

AEC assumes no liability for the legal effectiveness of any escrowed documents and volunteers no opinion, nor makes any representation as to the title conveyed or received, rights of lien holders, or any other matter affecting the interests of the parties in and to the subject matter of escrow.

Unless otherwise agreed to in writing by all parties, AEC shall compute interest daily on the unpaid balance to the date the payment is received and will commence interest as of the document date.

IRS regulations require AEC to collect Tax Identification Numbers (TINs) from payors and payees on Real Estate Contracts, Mortgages, and other interest-bearing instruments. Payor’s and Payee’s failure to provide AEC with correct names and TIN information will result in AEC charging the payor or Payee for each written request under the current fee schedule. AEC may restrict customer service and/or withhold the release of escrowed documents until the correct name and TIN are provided.

AEC shall be entitled to receive fees in accordance with its fee schedule, which is current as of the date the service is rendered. Unless otherwise agreed in writing by the parties, AEC shall deduct its fees from monies received before any disbursements.

AEC will follow the fee schedule for any additional disbursement fees, including payments, balloons, and non-scheduled payments. AEC reserves the right to change this fee schedule from time to time.

All payoffs, balloons, annual payments, and any amount over a single payment must be made in CERTIFIED or TITLE COMPANY FUNDS.

AEC reserves the right to assess additional fees on any account with excessive activity or special services not covered by the AEC fee schedule.

a. If any payment received by AEC in the form of a check or draft is dishonored for any reason, AEC shall have the right to give written notice to the parties of its intent to delay further disbursements. AEC shall not be liable for late payment penalties, interest, default, forfeiture, attorney’s fees, costs, or any other loss or damage to the parties, whatever, resulting directly or indirectly from delay of disbursements. There is a $50.00 or more service charge. Reimbursement of a dishonored check or draft will be in certified funds. We will reserve the right to require, at any time, certified funds for all subsequent payments until the end of the escrow period. 11. b. If any payment received by AEC, in the form of a check or draft, is dishonored for any reason and AEC cannot recover funds from the maker, the recipient will be required to reimburse AEC for the full amount of the dishonored check or draft, plus escrow fees.

AEC is not responsible for any late payment or penalties caused by insufficient funds, mailing delays, or late receipt of payments. Demands letters and payments are time-sensitive. AEC will honor whichever is received first.

Any short payment may be returned. It may be processed with a letter to the payor of the shortage; if the shortage continues, payments will be returned.

If a contract requires AEC to impound a portion of a monthly payment for the payment of taxes, insurance, or homeowner association dues, AEC must have the annual tax bill, insurance premium notice, or invoice for payment. It is the responsibility of the parties to confirm that any insurance policy escrowed satisfies the requirements of the contract escrowed. AEC is not responsible for verifying that any account escrowed with us has adequate insurance coverage. It is the responsibility of the parties to ensure AEC receives all tax notices, insurance premium notices, or invoices at least thirty (30) days before their due dates. Failure to provide these notices promptly and confirm receipt may result in penalties or policy cancellation for which AEC is not responsible.

AEC will have the right to resign as Escrow Agent by giving thirty (30) days’ notice to the parties involved of its intent to withdraw. The parties involved will thereupon jointly select a successor Escrow Agent and give AEC written notice of such selection. If, for any reason, the parties fail to select a successor Escrow Agent jointly, then AEC may select the successor Escrow Agent. AEC will surrender all of its documents and funds, deducting from them its charges and expenses, to the successor Escrow Agent, therefore relieving AEC of all further liability and responsibility.

Automatic withdrawal is a service that allows a payor to select from one of our designated draft dates for automatic payments to be drawn each month. An AEC Automatic Withdrawal Form must be completed, signed, and returned with a voided check or institution letter to AEC at least ten (10) business days before the first draft date. Automatic withdrawal payments are ACH transactions that must comply with applicable law. If the payor’s selected payment date lands on a Saturday, the payment will be processed on the Friday before. If the payor’s payment date falls on a Sunday, the payment will be processed on the following business day. If your selected payment date lands on a federal holiday, it will be processed on the business day before the holiday. Cancellation and confirmation of receipt of this service must be made in writing at least ten (10) business days before the next scheduled payment date.

Direct deposit is a service that allows a payee to receive disbursements via electronic bank deposit. An AEC Direct Deposit form must be completed, signed, and returned with a voided check or a direct deposit form from your banking institution to AEC at least ten (10) business days before the first deposit. Cancellation and confirmation of receipt of this service must be made in writing at least ten (10) business days before the next deposit. Direct Deposits are transactions that must comply with applicable law.

All funds received hereunder shall be deposited into an AEC trust account, which may be an interest-bearing account. AEC may retain all interest earned therefrom as and for additional consideration for account servicing.